Important: Proposed Changes to Leasehold Service Charges

Changes to Leasehold charges

Starting April 2025, Mansfield District Council will introduce updates to the calculation of leasehold service charges. These changes aim to align with industry best practices and ensure fair cost recovery.

Current Service Charge Breakdown

Service charges currently cover the following:

  • Core Charges:
    1. Ground Rent
    2. Management Fee
    3. Buildings Insurance
    4. Communal TV Aerials
    5. Communal Electricity
    6. Grounds Maintenance
  • Additional Charges (applied if required for your block):
    1. Communal Repairs
    2. Communal Cleaning
    3. Communal Window Cleaning
    4. Door Entry System
    5. Lighting
    6. Fire Safety
    7. Caretaking

New Interim Estimate Methodology

From April 2025, service charges will follow an 'interim estimate' method:

  • Annual Estimate: Charges will be estimated for the year (April–March).
  • Year-End Adjustment: Actual costs will be reviewed at year-end. Surpluses will reduce the following year’s charge, while deficits will be added.

This methodology provides predictable payments without in-year fluctuations and improves administrative efficiency.

How Service Charges Are Shared

Charges are divided among all units in a block, regardless of tenure. For example, a block with 50 flats (5 leasehold and 45 tenanted) will have costs evenly distributed across all units.

Your Feedback Matters

Adopting this approach is voluntary. If you do not respond by 13th February 2025, we will assume your agreement, and the new system will apply starting April 2025.

Next Steps

  • In March 2025, you will receive your first estimated service charge and further details.
  • If necessary, the Council may seek an advance determination from the First-tier Property Tribunal, and you will be notified of the process.

For questions or concerns, please contact us at 0333 004 0231 or mansfield@opushousing.com.